Certified Information Privacy Professional (CIPP) Practice Questions 2026 – All-in-One Guide to Exam Success!

The identification of third-party cybersecurity insurance as not being a common feature of state data security requirements is correct because many states outline specific security measures, policies, and practices related to the handling and protection of personal information without explicitly mandating that organizations purchase insurance.

State data security requirements typically focus on establishing comprehensive data protection measures, including the necessity of having policies to destroy personal information when it is no longer needed and mandates for a written information security policy. These features ensure that organizations actively manage the lifecycle of personal data and maintain structured protocols for data security. Similarly, data security controls designed to protect personal information are crucial and often required by state laws to safeguard sensitive data from breaches and unauthorized access.

On the other hand, while having cybersecurity insurance can be a prudent risk management strategy for organizations, it is not universally mandated by state data security laws. The absence of such a specific requirement signifies that organizations may have flexibility in how they manage their risk exposure without being required to hold third-party insurance.